neil cavuto is up in just a moment. i will be back 7 central 6 eastern. have a great afternoon. well they were back but they are still passing the bug. certainly passing on saving any of us any bucks. >> welcome everybody. glad to have you on neil cavuto. congress back in session for a full five days after a five week recess. god forbid they should break a sweat. senate wants to take another 7 week break time for them to campaign and time for us to keep racking up the debt at an alarming rate of 4 billion today. that works out to 228 more in thehead by election day. how about a bill that set fees on federal land.

yet another to protect the bill fish for american water. there's something called the north texas geib bra muscle barrier act of 2012. i have no idea. i have a good idea what they are doing about all of the tax rates and expiring alternative tax and alternative payroll campaign. nothing, nothing at all. dennis wants to bag all of these guys. i don't know why they are coming in then. >> it is the same thing. i can't wait later on in the week about who is hotter whether it is willa flint stone or betty rubble. this is what they have been doing forever. they go and vote on zebra mussels whatever that is when the country is going over a fiscal cliff and it is clear no one wants to make the big boy decision. that's what the tea party movement have republicans back to power in 2010 to do.

they have shown to be clearly i capable of making the big boy decisions. >> do you think it is the tea partyers are upset all of these guys are particularly upset with the republican leadership in the house, the senate? what? >> i think it's across the board. the tea party is nonpartisan. whoever said that we are governed by the party of evil and the party of two but nothing was more correctly stated. >> who is evil and who is stupid? >> leave that for you to figure out. we have the republicans promised to cut 100 billion in spending from a $1.4 trillion deficit like big deal. when they came to power in 2010 it ended up saving and cutting 250 million with m dollars. they spend that on golf balls every year. we are tired when we see our

country is borrowing 53,000 dollars per second that we have people in washington, d.c. nobody seems to care what is going on. >> obviously in the house, lee the republicans set the agenda they dominate that house. what do you think of speaker boehner? >> i think we are pretty underwhelmed. i was on your show a couple years ago talking about the low expectations based on the previous performances. stop spending as much time tanning and start spending time with our out of control spending in washington. it we are going to see them come back to washington for a couple days and do nothing. why kick the can down the road today when you can kick it down the road again in january? the problem is january as you mentioned early on we are going to have a lot of tax rebates and so forth that are going to be expiring. we are going to see obama care still losing. we don't know if we can get rid

of that. like the republicans have given up. there's no fight in them. we want them to cowboy up and bring the fight to the other big spenders on the other side. >> you think they have dropped the ball on that one and when it comes to sequestration they have automatic cuts they agreed to if they couldn't get to a budget agreement last year they are trying to back away from that. do you think, look, as draconian as they might be they would stick to that if they abandon it it would abad thing? >> i think it is a bad thing if they let those cuts expire. we are in the middle of a deep, deep recession if not a depression. there are 23 million people without jobs and a lot of those have given up trying to look for work. now is not the time to increase taxes on the dwindling producers in our country when we have a president that is trying to give more money away to the moochers and welfare. we need people working not sitting back receiving food stamps and unemployment.

it is laughable. republicans couldndon't accept . i am going to vote for romney. i am talking repealing obama care we talk about replacing obama care. let the private markets do what they do best create wealth and options. we don't see any of that coming from the republicans. it's like they are dancing to the tune of their good friends on the other side of the aisle. >> thank you very much phillip dennis. speaking of which there are coughing conservative fit. let's talk about this comment. >> i am not getting rid of healthcare reform. there are a number of things i like about healthcare reform i am going to put in place. one is to make sure those with preexisting conditions get coverage. two ensure the marketplace allows for individuals that have policies that cover their family up to whatever age they might like. >> here's where they got confused.

didn't sound at all like this mitt romney. >> we must reign in the sky rocketing cost of healthcare by repealing and replacing obama care. >> all right. former vice president dan quail. is it the same mitt romney? he seems very, very relaxed. you heard from tea parties and the like they are getting antsy they are getting nervous. they don't like the way the party is behaving for a brief period of congress and they don't like the way the presidential nominee is going. >> let's take congress first. you have to have a reality check here as you would say. the republicans control the house, the democrats control the senate and the democrats control the white house. if you are going to get something done all three have to work together. you would think by listening to a lot of the media the republicans and congress run the show. they don't run the show.

as a matter of fa sfafkt they a as a matter of fact they are the three. it's the wakest. that's the way the framers made it. but the idea that nothing is getting done the reason nothing is getting done, and i concur with whoever is saying that because there's no leadership from the president. the president has to lead and he has to lead the congress. he has to work with the house and senate. he awol since march. he is campaigning. >> when they agreed automatic cuts. now some of them are trying to back away from that. it bripgs the question about syria. >> that was a budget deal they made at the 11th hour. >> now they are trying to worm out of it. >> now they are trying to figure out what happened. if romney gets elected, they will kick the can down the road for 6 months and i think mitt

romney has a better chance to get mitt romney to work on something that is fit for the country. if obama gets elected it will be done during the lame duck and president obama might just let the whole thing go. >> mitt romney with the scare. mitt romney might not be saying that when it came to endorsing the president's healthcare plan which might be meritor why yous protecting the preexisting conditions your kids, et cetera. that is not as unequivocal as it was a couple weeks ago as saying i am going to rip this apart the first day of august. >> the clip you showed said repeal and replace. it wasn't just repeal. it was repeal and replace. >> you don't think -- >> you, well look. he's going after the independents he is going after the 10 percent that schomuppose haven't paid up. obviously. is he changing his mind?

is he flip flopping which a lot of critics say. he said all along repeal and replace. >> you might have heard the tea party might be unfairly. but i heard from others like him mr. vice president say, wait a minute, your son in arizona was beaten by a far more conservative you are not fairly represented accepting' kwee -- acquiescing wings. >> there is a battle going on among republicans. >> my son is a conservative. he tried to get something done. some people don't care about getting things done. you have to get things done. are you going to compromise your principals? no. you have to get things done to move the country forward. >> i think it is going the right way.

when they start getting to mitt romney he starts flip flopping the existing conditions want to stay a part of the law to me that's replacing the obama care. obama care is the objection with the dmant. t that is the whole thing. increased costs that go into the healthcare system. i heard your take i don't find anything inconsistent at all. >> if you harken back to when you and george senior were running it was angst among the core conservatives today. i am not saying it is that way now. but i am saying to the fact that it is a battle ground state romney and ryan are trailing that they are showing their frustration more. what do you think is going on? >> it is 14-15 percent not 8.1 percent. there's a lot of anxiety.

there's a lot of frustration. people giving up hope. you have middle aged children moving back in with their parents. the boomers are taking care of their parents and taking care of their children. this is a hardship we have not endured for a long period of time. what i found lacking, i still find lacking is there has to be a case, effective case made against the last three and a half years of obama. because what they want to do is blame it on george bush and it's the failed policies of obama thare the over regulation, the class warfare that has been going on. >> that might resinate. but as a republican do you worry somehow that isn't registering? >> well, i don't think it has been effectively communicated, quite frankly. if you have to do it in a way that should tell a story and tell a story about a single mother that is struggling.

tell a story about a steel worker that is unemployed. tell a story about a farmer, tell a story about a person. this is what has been lacking. also what i think has been lacking is where is the opportunities of growing letting people climb up the ladder rather than fall off the cliff. the rhetoric the vision, the hope, it is not quite there yet. i hope it comes rather quickly. i was hoping it would come at the convention. it started to but never really resinated. >> i don't think it will be sufficient just to get against obama. there is a lot of energy against obama. he is the most divisive president in my lifetime. there's a lot of people opposed to him. you are not going to win a presidential election that way. >> keeps him up in the polls. >> keeps him up in the polls. he has become the president.

you go back to jimmy carter he was up in the polls until 10-days before the election. >> michael dukakis was ahead of you guys. >> he was ahead of us going into our convention 7, 8 points then we came out of our convention about five points ahead. in those days you had bounces. >> and they were spread out. >> because campaigning didn't start so early. tito bam ma decid -- tito baat obama decided to start. >> you have to have a very good communication strategy that is going to touch the hearts of american people. to say if romney were president he can bring people together he will work to do that. he is the one that will help the person on welfare to get off welfare. he will help the person who needs to get a better paying job. he is the one that understands how to grow opportunities.

america is building opportunity society. we have more opportunities in this country than anywhere in the world talk about it articulate it, believe it. that's the vision, that's the story that will get romney elected president. >> vice president quail, always a pleasure. thank you very, very much. >> glad to be here. if you see this coming who is it really helping you? quayle. >> is it helping you or them? ay grease cleaning ingredients of one drop of the leading non-concentrated brand... to clean 2x more greasy dishes. dawn does more. so it's not a chore.

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introducing a stunning work of technology -- the entirely new lexus es. and the first-ever es hybrid. this is the pursuit of perfection. >> forget about rescuing our economy. ben bernacki it's all about rescuing barack obama. it isn't hard to image but here's hard to say. help the market and help the president. on that count it hurts the guy trying to become president. the same guy who already stated he wants ben out. market watcher greg smith says this to be a case of them returning the favor.

in a fit with mitt he has the power to prove it. >> well, sure the one thing that makes sense is another round of quantitative is not going to make use of two rounds. >> remind folks comes into the market doing the evening stuff buys any note treasury paper gets behind scarfs it up tries to keep rates low. they love it generally and expect it again. >> that's exactly right, neil. what happens is mr. bern neighboring key's own words it forces investors to go into the marketplace. you will see a pop in the stock market. most people don't realize the stock market is not the economy. but they look at the stock market if it's doing well my 401 k is doing well. mr. obama must be doing a great job. it's the only thing that makes sense now, neil. as you said fox business did a great job reporting on this. mr. romney is not going to have mr. bern neighboring key ser-- e

serve another term. mr. bernanke has two reasons to do this to ghetto bam marie elected number two to get him a new job. we don't have liquidity issue we have a confidence issue. there's 2.2 trillion encore pratt balance shee-- on corpora sheets. we are missing competence of the average american being willing to go take a mortgage out because he's not worried about losing his job or buy ago new car because he is make the payments or a businessman doing a capital expenditure in his business because mr. obama is not going to send us off a fiscal cliff. if we had that mr. bernanke knows we don't need more stimulus. we need confidence. >> there have been more than a few members who have doubts about the round of tirn vengs.

you cou -- intervention. you could argue the last thing we need is less cash. you need to come together the sinister notion there is something a foot and that is to goof the recovery that is dicey to help the guy at all. >> i believe that. i don't think there's anything sinister about it. it follows the pattern that mr. bernanke believes in. he truly believes in the kinzean model of stimulating their way back to prosperity. if you create enough money ultimately it will gain velocity and bring recovery. there's a problem with that, neil, all of this pent up demand all of the trillions sitting in balance sheets what happens when the money hits the market. we can have inflation like we had in 79, 80 we could see interest rates go up 15, 16 percent inflation rate and then we have a real mess on our

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>> to ohio governor romney looking for a boost in the battle ground state today. president obama is getting it he's up 5 points. this particularly will see what's going on in the battle ground state. what is happening there? >> this is a poll by public policy institute polling it is democratic note the poll had obama up three. they are showing the two point high which is not one that they

might necessarily expect. 5 point lead is a decent lead. it is not necessarily great news for the president. i don't know the exact time but through much of the democratic convention it is a chance on the jobs report. the president seems to be doing okay. what is behind that? >> well, at the national level let me tell you kneel we are seeing obama there's no question about that we had a new poll come out before he came on air. showed him up 6. he is up in the real clear politics average nationally. the question is really how big is this going to be and how long is it going to last? if you look back 4 years ago mccain had convention short lived. years after that george bush got a 6 or 7 point bump held on to this about a month before that

slunk down. it looks like the president did receive obama out of the convention at the national level and key point states. >> did romney get much of a bunch obump out of his? >> no, not really. i mean a lot of the polls said romney didn't receive much. part of the reason is romney did receive a bump after he announced paul ryan wasn't in the ticket. romney was down about five points in the policy average. by the time it was over they were tied at 47 percent each. romney received a bump but it started much earlier and dispersed in the two weeks after the convention. >> you always remind me about your jazzed they are how loyal they are. conventions bring out the bait

for both. i would think it is how people view it or not. that is considered like a crucial seminole figure. it almost guarantees reelection. to be low it not. but for the president you have to be liking that one. right? >> the approval rating is a key measure. obviously it makes sense if you think the leader is doing a good job you will reelect him. if you don't, you won't. it is not a good time for the president. this is one of his key strengths he is considered a likeable guy. people give him the benefit of the doubt they think he's a nice guy good husband good father even if they don't like where the economy is or some of his policies. the favor ability gap shrinks that is not good for the president. >> it is remarkable for the

economy and everybody else. >> if you just looked at the metrics, with unemployment where it is gas prices where they are right track wrong track polls you say the incumbent should be doing badly. this election isn't working out well. in part voters still do understand obama was inherited a mess and still cutting up slack despite it has been a full term. buying the argument things would have been worse had i not done what i did and i need time to continue these policies. democrats are buying this argument. they may switch to romney over the next 60 days. that is where we are today. >> tom, thank you very much. remember the democrats rallying against paul ryan's voucher plan? they had one all along they weren't talking about it.

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>> president obama and governor romney don't agree on much. but the department of health and human services is now conducting a medicare pilot program in 18 states fuelling costs that they are moving toward a voucher system at least alternative to medicare. the tests already compared to a

proposal by vice presidential candidate paul ryan. it gave them a fit last week. >> they want to end medicare guarantee and purn turn it into voucher. >> voucherize medicare. >> it would replace the guarantee of medicare with a voucher. >> replace it with a voucher. >> really, mr. romney? >> will the administration's new row gram be enough to silence the attacks for karl rove. the white house haven't gotten a statement wefrom either as of y. they might have been planning this for some time. >> obviously rment it's medicaid they are going to go for medicare. it helps provide healthcare for america's poor. they are proposing an experiment

in which they will be given permission to in essence voucher identifies a former premium support for several million poor americans to allow them to get healthcare coverage from private insurance companies rather than just simply to have the government pick up the tab for their health services. >> but they would have that option, right? >> they would have that option. look, let's be honest about this. the democrats have been demagoguing and the president has already proposed a voucher plan and presides over a voucher plan if they want to use the words. americans are not covered by employers and are not -- make too much money to get into medicaid will get a voucher from the government they can in essence use to get healthcare coverage from an insurance company to offer a plan to meet the federal government stringent standards. they have a voucher plan to cover ten's of millions of

people it is called obama care the affordable care act. they preside over a premium support model medicare prescription part d. you have a certain amount of money you can use to stop against a variety of plans and you can meet your family's needs. the administration made no effort to over turn this which was passed by republican congress signed obama's predecessors. seniors love it. it is driving healthcare costs down. it is the only government run healthcare program in the history of the u.s. to come in under budget next year it will come in on the first ten years on the books 40 percent under budget because of the competition installed in this premium support. >> thank you for correcting the medicare and medicaid thing. could you think it could be a signal of even what the administration might be pondering down the road or a good alternative down the road

to give an alternative option? >> the administration builds on other suck sellingses and medicaid experiments that point to competition and choice. you look at what was done in florida, what was done in rhode island or governor cherry both republicans who use the support models to help get better to what turned out to be better coverage at a lower cost for residents of their state. the reason is simple. it is becoming informed consumers to play a role in it to plan to shop around to best meet the familiar lace needs. amazingly enough unlike locals most americans are capable of making incredibly good rational decisions. both experiments of florida drive down healthcare costs for

the state. it is live by medicaid this is really important for the country. >> if you think about it whatever savings the administration it is slipping medicare for what would be savings in the healthcare plan. an alternative would exact the price concessions to medicare alone was not or could not. i wonder if they are just reading from a different page>> there are two big differences they don't believe in competition they don't believe they have a messy marketplace in which people compete. that's why under the affordable care act under the exchanges they try to make all of the health insurance policies look alike. you can't compete on the basis of prices. if you went to ford, vw, gm, honda, honda hey, bmw, mercedes,

they all lack alike. the second thing is it does not have some of the technical provisions in this that encourage competition. what you do is you have all of these insurance policies competing against on the basis of price. you look at the second loews average policy which encourages them to come down. you have to figure out how i can do more with less. can you image us trying to design the ipad or the ipod by -- or smart phone with bureaucrats saying they have to look alike with the same features and be done with exacting relationship to federal standards what you can and cannot do? that wouldn't give you progress and wouldn't be driving prices

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sue oo drivers are paying for it to go. it could impact the election. even if that number goes down it won't be in time to give relief to the president. what is amazing to me is how well the president poll numbers held up even in the face of gas prices continuing to go up. >> i am amazed as well. i think it is because they haven't framed it correctly. i am amazed every other

president that experienced gasoline prices has been the guy to stop the blame. president obama is getting a pass. i think he is giving them a pass for a couple of reasons. people are getting used to these higher prices. they have had high prices, prices have conti rocket under the obama administration. i doesn't get the blame. he blames owl companies and speculators. there han no president in recent memories that have policies like this one. there will hasn't been a president that seems to favor high gasoline prices by the policies. we could go on and on. i can't hear of one more president who closed refineries on his watch. the romney campaign frames it correctly and get the story out there i think it's going to hurt

the president. >> the romney campaign might be doing that but it is not doing it now. >> it is because of war rack obama. i have been drill baby drill president. >> he hasn't been. this is the case. most people in the energy industry say oil production and gas production has gone up despite president president. president obama get out of our way. let me tell you something. no president in the last 50 years have had a chance to become energy independent. not anything that the president did because of new technology in the industry. we are talking about the production in canada. president obama in an effort to

be the gleareen energy has push away from that opportunity and set this country back. if he would have worked with the energy industry he would have created more jobs and been with energy today. >> my energy policy won't be made by oil companies. it is the solyndras either. we have had a policy that has been created that. >> always good seeing you. thank you. >> aig wins. reaction right now from the president announcing he sold aig stock. making the tax pier minority shareholders for the first time since the financial crisis. this doesn't justify that then

now or ever. we are celebrating weaning ourselves from the government but the sad commentary is there. >> i agree. i have spoken historically on the show about the fact that the government is involved in any sort of financial bailout is the wrong decision as well as any of the other decisions in venture capital arena. >> go baby go. >> look, at this point i am saying go baby go. i want to rewind the clock a bit and say they should have never gotten into the equity arena and bail out business. as much as i say they shouldn't be in the business of venture capital arena with the likes of solyndra. they have never historically been in the business of bailing out companies. >> started with a republican president. i worried about the slippery loep effect. you did as well. it is what it is. they are back up and running the

stock at aig is jumping up. the stock of all of the financial planners off their lows. we are in good shape. it was all worth it, what do you think? >> i say no. i think the notion of too big to fail is something the mentality in this country kneel whether it be especially in the bigger business of the aig's of the world the bank of americas is this notion now in the united states that someone will bail me out. i think that that runs counter intuitive to what capitalism is. >> the european's rescuing like the bunch has become socialist. >> until the dollar is worth nothing. if people don't take into consideration 1, 2, 3 and put more supply in the market and our dollar and credit rating continues to go down. >> on that happy note, karl?

>> it is grounded. >>

>> all right if a picture is worth a thousand words what about this one? these images hitting the web. vice president obama hit the campaign trail. my favorite is that i thought of this picture of mitt romney on a jet ski. how are people reacting to this one. personalize a moment reinforce or just about other people. monica crowley the author. i want to know how the picture of the president being lifted up by the pizza owner. >> in a bear hug.

>> does that help or hurt? >> some people say it's endearing. it was staged the secret service knew this man was going to approach him. >> this guy had been at the white house to talk about other issues. >> if i was a president he could never have done that. the president is a thin fit guy. >> he works out. >> he does. i didn't mind that. >> i don't think this hurt. the biden picture. >> biden this is the one that worries me. >> that's a little weird right there. >> what was he whispering to her? >> no idea. i don't want to know. >> maybe he was saying it was a big fing deal. >> there was a time in american politics where images like this could actually be devastating. >> john kerry coming out of some sort of factory all dressed in white looking like a firm.

>> i didn't think that. >> i think a lot of people were, too. >> what i was thinking woody allen. >> but the one with mitt romney, he makes them look rich. so any of these images stick? there was a time when they had the echoed effect. a oo they make an ad out of them. they made an ad out of him sailing flopping in the wind. >> paddle boarding whatever he was doing out in the open. >> it can be used to illustrate. >> it is a narrative. i think it also has even if that case it has a lot less staying power these days on either side

because of the hyperactive media in the world. >> monica still soaring on the best seller list. corporations aren't people. twhaent to know. robots. when something that sounds dumb keeps getting dumber. . does your phone give you all day battery life ?

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i love you, james. don't you love me? i'm a robot. i know. i know you're a robot! but there's more in you than just circuits and wires! uhhh. (cries) a machine can't give you what a person can. that's why ally has knowledgeable people there for you, night and day. ally bank. your money needs an ally. >> neil: so, if corporations aren't people, when we rescued g.m., we rescued what? parts? how stupid does this argument get? i'm sorry, it's bugging the you know what out of me. of course corporations are people. the one i work for has plenty of them. you're looking at one of them right now. do i look like a robot? don't answer that. yours too, i suspect.

what makes the antibusiness rhetoric dangerous is the sheer arrogance. i don't remember in the auto bail-out, the guys pushing for them saying we were saving cars. no. they said, quite rightly at the time we saving folks building those cards. at least i hope we were. wouldn't it be a killer if we turned out $100 billion saving overpriced escalades? no. they didn't bill it that way then. enough of the talk now. selectively picking and choosing the companys you think are worthy of praise and those you think are not. green companies are good. oil companies are not. i suspect that is because green companies are run by people, trying to do some good. and oil companies, i suppose, greedy ocean-drilling guided by profits doing nobody no. one any good. leaving aside that the oil companies taxes do a lot of good and green companies fail one after another, leave the taxpayers with bill, a lot of

bad, where is the silliness going? think about it. follow it through. that is my point. the stupid class warfare on what corporations are, has no point. corporations are people. they are run by people. they are employed by people. they are vested by teem. some are good people, some are bad people, some are clueless people, but they're all people. peel like us, rescued by us. machines didn't make them what they are. the workers did. management did. all of them, people, human beings. all of this, not people stuff in possiblep.i wonder if they'rr sinister robots trying to sidetrack us. sorry. that was one of the most asinine things i've heard. they all clap. corporations aren't people. meanwhile, the convention made possible by